The Pound Sterling (GBP) is likely to trade in a range, probably between 1.2815 and 1.2870, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP is likely to trade towards 1.2780

24-HOUR VIEW: “We expected GBP to trade in a range between 1.2810 and 1.2890 yesterday. GBP subsequently traded in a relatively quiet manner between 1.2821 and 1.2866, closing at 1.2837 (-0.18%). Further range trading seems likely, probably in a range of 1.2815/1.2870.”

1-3 WEEKS VIEW: “Our update from last Friday (26 Jul, spot at 1.2855) is still valid. As highlighted, ‘downward momentum is building, but at this time, it is premature to expect a significant decline.’ Overall, provided that 1.2895 (‘strong resistance’ level previously at 1.2910) is not breached, GBP is likely to trade with a downward bias towards 1.2780.”